Simpson Manufacturing CoSSD +1.48%96 Altman Z-Score is 7.79 as of Jun. 26, 2026, which is 30% below its 10-year median of 11.09. GuruFocus rates SSD with a GF Score™ of 96/100 and a GF Value™ of $184.96 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 283 Forest Products companies, Simpson Manufacturing Co ranks better than 93.64% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 7.71 is strong.
Simpson Manufacturing Co has a Altman Z-Score of 7.79, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Simpson Manufacturing Co's Altman Z-Score or its related term are showing as below:
SSD'
s Altman Z-Score Range Over the Past 10 Years
Min: 4.23 Med: 11.09 Max: 15.35
Current: 7.71
During the past 13 years, Simpson Manufacturing Co's highest Altman Z-Score was 15.35. The lowest was 4.23. And the median was 11.09.
Simpson Manufacturing Co (NYSE:SSD) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Lumber & Wood Production subindustry, Simpson Manufacturing Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Simpson Manufacturing Co Altman Z-Score vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Simpson Manufacturing Co's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Simpson Manufacturing Co's Altman Z-Score falls into.
Simpson Manufacturing Co Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Simpson Manufacturing Co (SSD) has a Altman Z-Score of 7.79 as of Jun. 26, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Simpson Manufacturing Co and its competitors. This is 30% below median its historical median of 11.09. Over the past decade, Simpson Manufacturing Co's Altman Z-Score has ranged from 4.23 to 15.35. According to the industry distribution chart, Simpson Manufacturing Co ranks #18 out of 283 companies in the Forest Products industry, placing it in the top 6.4%.
Is Simpson Manufacturing Co's Altman Z-Score too high?
Simpson Manufacturing Co's current Altman Z-Score of 7.79 is 30% below median its 10-year median of 11.09. Over the past 10 years, this metric has ranged from a low of 4.23 to a high of 15.35. The Forest Products industry median Altman Z-Score is 1.81. Simpson Manufacturing Co's value of 7.79 is 330.4% above this industry median. Based on the distribution chart, Simpson Manufacturing Co ranks #18 out of 283 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Simpson Manufacturing Co has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Simpson Manufacturing Co's Altman Z-Score compare to UFPI and BCC?
According to the Forest Products industry distribution chart, Simpson Manufacturing Co ranks #18 out of 283 companies for Altman Z-Score. This places Simpson Manufacturing Co in the top 6% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 1.81. Simpson Manufacturing Co's value of 7.79 is 330.4% above this benchmark. Historically, Simpson Manufacturing Co's own Altman Z-Score has ranged from 4.23 to 15.35 over the past decade. While the company's 10-year median is 11.09 vs. the industry median of 1.81, Simpson Manufacturing Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Forest Products company?
The median Altman Z-Score among Forest Products companies is 1.81, based on 283 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simpson Manufacturing Co's current Altman Z-Score of 7.79 is 330.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Simpson Manufacturing Co and its competitors. For the Forest Products industry, the median Altman Z-Score is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simpson Manufacturing Co's current Altman Z-Score is 7.79, which is 30% below median its own 10-year median of 11.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simpson Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Simpson Manufacturing Co (SSD) is currently considered Modestly Overvalued. The stock's GF Value™ is $184.96, compared to a current price of $209.64 — trading 13.3% above its estimated fair value. The current Altman Z-Score is 7.79, which is 30% below median its 10-year median of 11.09 and 330.4% above the Forest Products industry median of 1.81. Simpson Manufacturing Co's overall GF Score™ is 96/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Simpson Manufacturing Co (SSD), the current Altman Z-Score is 7.79 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Simpson Manufacturing Co (SSD) Overvalued in 2026?
Based on GuruFocus' analysis, Simpson Manufacturing Co stock appears to be overvalued.
The current stock price of $209.64 is trading 13.3% above its estimated GF Value™ of $184.96.
GuruFocus considers Simpson Manufacturing Co to be Modestly Overvalued.
Key valuation signals for SSD:
Altman Z-Score: 7.79 (30% below median its 10-year median of 11.09)
GF Value™: $184.96 vs. price of $209.64 (13.3% above fair value)
Industry Position: 330.4% above the Forest Products median (#18 of 283)
No single metric tells the full story. See the SSD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simpson Manufacturing Co Inc designs, manufactures, and markets systems and products to make buildings and structures safe and secure. It produces wood construction products, including connectors, truss plates, fastening systems, fasteners, and shearwalls, as well as concrete construction products such as adhesives, specialty chemicals, mechanical anchors, powder actuated tools, and fiber reinforcing materials. The company serves residential, industrial, commercial, and infrastructure construction, remodeling, and do-it-yourself markets, operating exclusively in the building products industry. It has three regional segments: North America, Europe, and Asia/Pacific. The majority of its revenue comes from wood products.
96GF Score
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